·Operating income rises to Euros 40 million, an increase of 101% ·Consolidated sales amount to Euros 615.2 million, up 11.1%, with significant increases in construction (+10%), concessions (175%) and services (+44%) ·The construction backlog hits a record high: Euros 4,308 million, up 14% on the figure recorded in March 1999 ·In the first quarter of 2000, gross investments totaled Euros 165 million In the first quarter of 2000, Ferrovial obtained Euros 27.9 million (Ptas 4.641 billion) in net income attributable to the controlling company, up 41.6% on the Euros 19.70 million (Ptas 3.277 billion) posted in March 1999. Income before tax amounted to Euros 38.3 billion (Ptas 6.367 billion), 59.2% more than in 1999. Operating income was 101.1% higher than in the same period in 1999 and totaled Euros 39.6 million (Ptas 6.585 billion). The margin rose from 3.6% to 6.4%. As of 31 March 2000, consolidated sales amounted to Euros 615.2 million (Ptas 102.359 billion), an 11.1% increase on last year, with strong growth in all areas of business, principally construction where business turnover rose by 10%, the infrastructure concessions division, with an increase of 175%, and services, with 44%. In the first quarter of 2000, Ferrovial continued to make substantial investments, which amounted to Euros 164.7 million (Ptas 27.4 billion). By businesses, construction reflects part of the investment made to acquire 58.5% of the Polish construction firm Budimex an operation that was completed in April 2000- and notable investments were made in the purchase of land and in concessions, with capital contributions to the Antogafasta airport projects and the ETR 407 motorway in Canada. Record high construction backlog Sales increased in all Ferrovials areas of business in the first quarter of the year 2000. The construction business continues to perform well and business turnover rose by nearly 10% to Euros 540 million (Ptas 89.812 billion). As of 31 March 2000 the construction backlog hit a record high at Euros 4,308 million (Ptas 716.791 billion), a 14% increase on the figure registered in March 1999. This backlog guarantees 24 months of activity. In the first quarter of this year Ferrovial completed the operation to purchase a 58.5% holding in the Polish construction firm Budimex. This investment is a strategic bid in the Polish and Central European construction market, which will grow on the back of the EU funds going to the countries in the area that join the Union as of the year 2003. In the year 2000 Budimexs sales are expected to total Euros 480 million (Ptas 80 billion). Budimex will be integrated through global consolidation with effect as of 1 January 2000. However, in this first quarter Ferrovials business turnover does not include any revenues from the Polish contractor. In the real estate division, sales were in excess of Euros 21.1 million (Ptas 3.512 billion) as of 31 March 2000. This figure reflects a seasonal effect in the delivery of housing, which will be reactivated in the second half of the year, particularly in the last quarter. In the first quarter, a total of Euros 92 million (Ptas 15.3 billion) was invested in land, which mainly corresponded to the acquisition of land for future residential developments in Madrid and Tenerife and confirms Ferrovials bid for the continuous growth of this business. Canada, motorway in Portugal and airport in the USA In the concessions business, conducted by Cintra, on 31 March sales had increased by 175% to Euros 51.4 million (Ptas 8.563 billion), thanks to the incorporations of the Canadian ETR 407 motorway and the Costa del Sol motorway between Malaga and Estepona. In the first quarter of 2000 two new bond issues were conducted in Canada for a joint amount of 755 million Canadian dollars. With these issues, the process of refinancing the C$ 2.3 billion three-year bridging loan for the acquisition of the Canadian ETR 407 motorway was completed. The Canadian markets confidence in this project has enabled the financing plan initially envisaged for this concession to be brought forward by two years. During the period, Ferrovial won the concession for the Scut motorway in the Algarve, the first motorway contract for Ferrovial in Portugal and the sixteenth for the Group worldwide. The project implies an investment of Euros 228 million (Ptas 38 billion) and the duration of the contract for running the motorway, under the shadow toll regime, is of 30 years. In the first quarter in the airport management business Ferrovial won the concession for the second airport to be privatized in the USA, Niagara Falls Airport, in New York State. The concession has a duration of 99 years and implies that Ferrovial has been recognized as an independent airport operator by the U.S. Federal Aviation Administration (FAA), one of the basic requirements for taking part in future privatization processes in the USA. In the services business, as of 31 March sales had risen by 44.1% to Euros 282 million (Ptas 4.69 billion), consistent with the strong rate of contracting last year. The backlog of services totals Euros 587 million (Ptas 97.5 billion). In telecommunications, Ferrovial maintained its franchise in the fixed telephony and cable businesses, through Uni2 and Ono (Cableuropa), respectively.